The bulk of HK’s business is on the military market, both within and outside of Germany’s borders, and only a small percentage of their profits come from commercial sales. With their firearms in limited demand these past few years, they have only been earning enough to cover the interest on their negative assets.

HK owes about $160 million, just shy of $10 million more than they’re currently worth. But the company isn’t worried, despite their recent status downgrade by Moody’s, as they have also just landed a major machine gun contract.

Starting in 2015, the German military is going to begin wide-spread adoption of the MG5, aka HK 121, a medium machine gun chambered for 7.62 NATO. The MG5 is going to replace the MG 42-derived MG3 that has been in German service for over 50 years and compliment the MG4 light machine gun chambered for 5.56 NATO.

The company’s plan is to continue to pay its interest with smaller contracts and commercial sales until the MG5 contract comes through. The company is not expecting to undergo any types of financial reconstruction nor government intervention.

Some additional testing on the MG5 is scheduled for later this year beginning in August. These tests will allow HK to tweak their design to function reliable in multiple climates and ensure that it will survive operational standards that include taking a fall from a helicopter.

The MG5 is not an entirely new design, as it’s based on the existing and well-received MG4 design. It is very much a bigger, heavier version of the light machine gun already in service.

The majority of the reasons for the change are safety-minded. The MG4 and soon-to-be MG5, the HK 121 MG, feature quick-change barrels with shrouds that allow soldiers to install a cool barrel without needing to wear safety gloves and a firing pin design that prevents the machine guns from firing out of battery. Also, and this means the world for victims of hot brass, these machine guns can be made to eject to the right or downwards.

The MG5 can also feed a number of different types of ammunition, from standard 7.62 NATO disintegrating belts, 50-round quick-loading drum canisters and separate belt boxes. It is compatible with a number of different mounting systems, including M3 tripods, standard German vehicle mounts and American M122A1 tripods. It also has a side-folding stock to make easier to transport and an adjustable rate of fire for different mission types.

Still, it’s got to be a bit painful for HK fans to hear that the company is cash-poor, mostly because they want to give them their money.

HK products are at a fairly constant high demand in the U.S. and command a price premium for their designs. The company is currently dealing with a back-log of handgun orders in the American market as domestic gun sales remain strong.

Many of HK’s most iconic firearms are restricted for import. Nothing would make American HK supporters happier than to hear that they intend to use some of that German MG5 contract money to expand manufacturing in the U.S. if that meant an MP5 carbine for the commercial market.

H&K is the best firearm you can get for the money that is why they are in the hands of more special forces units worldwide than any other name in the firearm industry. So what if it's a thousand dollars for a handgun when you can fire over 30,000 rounds from a handgun and not have to replace a single part to that point it's worth every penny. Show me another handgun you can do that with. Glock? , Ruger? Kahr?, Springfield?, and dare I say it SIG? NO you cannot. Case rested.

Serge Shirokov Different people different opinions, but I would like to know where you pulled that 99.99% statistic. FYI I go through 17-18 k rounds plus a year and thats just for competition training as do thousands of others that compete. And While a Glock may be a fine gun (I own several) they will never touch an H&K. The triggers are just as good as any other higher end gun out of the box, though I admit I put an aftermarket trigger in most my guns anyway But that's because I want the best. on the best. I buy a Glock I put as much money into it as if I had bought an H&K, just to get on their level. And Oversized? Please if baby hands can't handle the big boy guns, that's why they make the compact versions. These are combat firearms not tin can backyard plinker toys. These guns are made to do one thing and that is WORK to save your life no matter the situation. If you want the best forget the rest H&K is the way to go. The two most consistent accurate and reliable handguns I ever fired straight out of the box were an H&K and a Sig, both worth every penny. Oh and last thing by the time you wear through your Glock parts and replace them or buy new Guns you could have bought one H&K kept it and saved a bunch of money. It's the age old conundrum spend alot now, none later or a little now and a lot over time.

Bottom line you can't afford it don't buy it, but don't try and say your shit is just as good because your butt hurt you can't buy the real thing.

I really hope they expand U.S. manufacturing and get a couple variations of Civilian legal MP5s in heavy circulation while it's still possible - no one knows how long it will be before Liberals pull off their upset and lock down assault weapon laws.

H&K make great firearms but their marketing and distribution in the US sucks. Try finding a holster or mag for that new pistol you just bought... Good luck. God forbid you need a spring or trigger parts... I owned a H&K USP 45 but sold it and bought two Glocks. I just got sick of not finding what I needed for my USP.

you know if HK wouldn't continue to thumb their noses at the civilian market maybe they would not be in debt so much. they think that just because it has H&K on it that it instantly makes it worth double what other comparable guns are worth. they piss people off and only serve to drive them to other manufacturers. i still havent figured out what makes the HK 416 piston AR worth twice what a comparable Colt AR is. shit my little del-ton m-forgery with an adams arms piston kit runs like a champ for me and i have owned multiple HK firearms in the past.